The JMMB Group has reported a J$1.21B increase in net profits for the six month period ending in September. This is backed by a 17.8% increase in operating revenue totaling J$5.87B.

As a result, the Group which boasts operations in Jamaica, the Dominican Republic and Trinidad and Tobago, saw earnings per share also increase to J$0.72, up from J$0.63.

According to the group, its performance was mainly driven by gains in securities trading, foreign exchange trading and commission income which saw growth of 35.2%, 30.5% and 46.4% respectively, as a result of volume increases and the company’s ability to seize market opportunities, mainly in Jamaica. It says in addition, growth in the Group’s loan portfolio in Jamaica and Trinidad and Tobago contributed positively to its performance.

In addition, the Group’s net interest income (NII) also remained steady, at J$2.77B, which reflects a marginal increase of 2.5% when compared to the prior period.

Meanwhile, as the JMMB Group seeks to leverage operational synergies from its growth in the Caribbean region, expenses associated with: integration costs; growth in the subsidiaries across the regional markets, including the acquisition of 90% shareholding of Banco Rio in the Dominican Republic; and increased cost of funds, largely drove the increase in the Group’s operating expenses, which reflected a year-over-year movement from J$3.7B to J$4.3B.

It says growth in expenses was also impacted by an increase in asset tax of J$397.5M, which was recognized in April 2015.

Despite this increase in operational expenses however; the Group’s operational efficiency remained stable. This is evidenced by the 73.0 % efficiency ratio recorded over the period, when compared to a 73.3% over the prior period. There has also been a significant improvement in the performance of operations in Trinidad and Tobago, which contributed J$96.8M net profit over the six month period.

The Way Forward
The Group says in a bid to continue to manage operational expenses, it is introducing several initiatives across its operations starting with Jamaica, as its main market. Additionally, the company says it is moving to bolster its self-service offerings with additional electronic platforms, while reengineering some of its processes, by the end of the financial year, in order to provide increased access to its clients, while also managing its expenses.